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Capital requirements for non-Mongolian investors
Tax stability
Bilateral investment treaties of Mongolia
Taking security in mongolia
Mongolia Investment Law: select issues
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Definition of “investment”:
–equity investment
–foreign equity investment > 25% of paid-in capital
–other forms of investment also allowed
Capital contribution by each non-Mongolian investor
(shareholder) > US$ 100,000
Capital requirements for non-Mongolian investors
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1. Corporate taxation:
– CIT - 10% (or 25%)
– VAT - 10%
– Customs duty - 5%
– Capital gains - 10% (or 2% of gross value in case of property)
– Social insurance contribution - 11% (of overall payroll)
– Mining royalty – 2,5%-5%, plus surtax of 1%-30% (depending on
minerals, market prices and degree of processing).
2. Withholding taxation of non-residents (dividends, interest, profit
repatriation, royalties, any other Mongolian-source income – all 20%)
3. Certain rates may be reduced under double tax treaties.
Tax stability: key Mongolian taxes
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Benefits
Eligible taxes
Criteria for eligibility
Beneficiary
Duration of stability
Tax stability: Certificate of Tax Stability
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About 40 BITs
Scope
Rights and guarantees
Practical relevance
Bilateral Investment Treaties of Mongolia
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Governing law of standard loan documentation
Popular security assets:
– Immovable (buildings and land title)
–Mining licenses
–Equity shares
–Movable property (vehicles, equipment)
Taking Security in Mongolia
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QUESTIONS ?
Disclaimer:
The information in this presentation and the answers given to
questions are for general information only. Specific
professional advice should be obtained in respect of any
transaction or dispute.
Mongolia Investment Law: select issues
7
Contact details:
MDS & KhanLex LLP: The merged law firm of KhanLex
Advocates LLP and MDS Associates LLP
Mr.Enkhbat B, Partner
Commercial, Energy
Phone: +976 99111061
Email: [email protected]
Mr.Sugarnyam P, Partner
Finance, Property
Phone: +976 99999678
Email: [email protected]
Ms.Odmaa B, Partner
Mining, Corporate
Phone: +976 11330048
Email: [email protected]
Ms.Dugerjav D, Partner
Capital Markets, Legislative
Phone: +976 99119181
Email: [email protected]
Mr.Batjargal G, Partner
Mining, M&A
Phone: +976 99001070
Email: [email protected]
Mr.Maizorig J, Partner
PPP, Infrastructure
Phone: +976 88103905
Email: [email protected]
Ms.Munkhgerel D, Partner
Litigation
Phone: +976 11330048
Email:[email protected]
MDS & KhanLex LLP
2nd floor, G-Mobile HQ
Baga toiruu 3/9, 1st khoroo, Chingeltei
district, Ulaanbaatar 15160, Mongolia
Tel: (+976) 11 330048
Fax: (+976) 11 330049
[email protected], www.mdsa.mn
